New SEC Staff Statement; Secretary Bessent calls for Robust Developer Protections; House Ag Hearing; CFTC Innovation Task Force; Treasury Department Cybersecurity Initiative; New SEC Podcast

New SEC Staff Statement: Broker-Dealer Rules for User Interfaces

On April 13, 2026, the Securities and Exchange Commission’s (SEC) Division of Trading and Markets issued a staff statement clarifying when certain user interfaces that facilitate crypto asset securities transactions can operate without registering as broker-dealers under the Section 15 of the Securities Exchange Act of 1934.

The staff statement defines a “covered user interface” as a non-custodial, user-facing tool such as a website, mobile app, or wallet interface (front-end) that makes it easier for users to initiate self-directed transactions through their self-custodial wallets. To fall within the statement, a “Covered User Interface Provider” must meet a list of conditions, including avoiding nine specifically prohibited activities. Notably, Covered User Interface Providers can receive transaction-based compensation so long as it is limited to a “fixed charge” that is based on objective factors, applied consistently, and agnostic as to product, route, venue, and counterparty. SEC Commissioner Hester Peirce commended the staff for issuing the statement, but also said she favors “a more permanent regulatory approach that addresses the broker definition in light of current market circumstances.”

DEF is grateful to SEC staff for this statement and for engaging with digital asset industry participants as they develop regulatory frameworks that enable and incentivize innovation. 

If you want to continue digging into this topic, you can review the joint proposal previously submitted to the SEC by DEF and a16z Crypto, proposing a safe harbor framework for DeFi front-ends.

Treasury Secretary Bessent’s Op-Ed Calls for Robust Developer Protections 

On April 8, 2026, Treasury Secretary Scott Bessent authored an op-ed in the Wall Street Journal, urging Congress to pass the Digital Asset Market Clarity Act, the Senate’s digital asset market structure bill. Secretary Bessent framed the legislation as a necessary complement to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, arguing that stablecoin legislation cannot deliver its full promise without a broader market structure framework and warning that continued regulatory uncertainty would push digital assets development offshore. 

Notably, Bessent explicitly named “developer protections” as a core tenet of the bill, and called for more legal clarity for American software developers to keep innovation open, secure, and domestically built. On April 10, 2026, Secretary Bessent’s sentiments were echoed by Patrick Witt, Executive Director of the President’s Council of Advisors on Digital Assets, who explained that “protecting software developers is one of the most important aspects” of the market structure bill and a “core pillar of making the U.S. the crypto capital of the world.” Witt added that “criminalizing code does nothing but drive innovation offshore.” 

Representative Barry Moore and CFTC Chairman Selig Discuss Software Developer Protections

On April 16, 2026, the House Committee on Agriculture held a hearing entitled “For the Purpose of Receiving Testimony from the Honorable Michael Selig, Chairman, U.S. Commodity Futures Trading Commission.” During the hearing, Rep. Barry Moore (R-AL) voiced his “concern that software developers and people building blockchain infrastructure could once again be caught up in regulation by enforcement under a future administration,” and asked “what the CFTC is doing to help build a durable framework that protects people who are simply building software and not holding customer funds so we do not go backwards a few years from now?”

In response to questions about trust and decentralization, CFTC Chair Selig highlighted the importance of protecting software developers, emphasizing that legal uncertainty for developers “pushed innovators offshore” and “caused it to really languish here in the United States.” Watch the full hearing here. 

CFTC Appoints Inaugural Members to New Innovation Task Force

On April 10, 2026, Commodity Futures Trading Commission (CFTC) Chairman Michael Selig announced the inaugural members of the new Innovation Task Force, which is charged with developing a clearer regulatory framework for emerging technologies in U.S. derivatives markets. Michael Passalacqua, senior advisor to Chairman Selig, leads the task force, which will focus on crypto assets, artificial intelligence, and prediction markets, and includes both CFTC staff and private-sector experts. 

Treasury Department Launches Cybersecurity Information-Sharing Initiative  

On April 9, 2026, the U.S. Department of the Treasury, through its Office of Cybersecurity and Critical Infrastructure Protection (OCCIP), announced a new cybersecurity information-sharing initiative for the digital assets industry. The Treasury Department’s announcement highlighted that digital asset firms are now an increasingly important part of the financial system that require improved cybersecurity measures to appropriately protect market stability and consumers. The initiative aims to strengthen resilience against growing cyber threats by providing eligible U.S. digital asset firms with timely cyber threat intelligence to help identify, prevent, and respond to attacks targeting their systems and customers. 

Generally speaking, the OCCIP initiative reflects a broader policy shift: by creating a formal channel for government-industry coordination and proactive threat sharing, Treasury is moving from reactive enforcement towards preventative, information-driven oversight.

SEC Chairman Debuts “Material Matters” Podcast 

On April 16, 2026, SEC Chairman Paul Atkins announced the launch of “Material Matters,” a new podcast to “provide the American public with an inside look at the SEC’s vital work.” In the debut episode, “Commissioners Set the Course,” Chairman Atkins sits down with Commissioners Mark Uyeda and Hester Peirce to discuss work still ahead at the SEC, including digital asset regulation.

Among the themes raised in the conversation, Commissioner Peirce emphasized that “the beauty of the technology is that it allows you to disintermediate so that peers can transact with one another directly or through the intermediation of technology…through the power of smart contracts” and that it is the SEC’s role “to make [the United States] the place where people want to innovate whether it’s in crypto or something else.”  

Watch the podcast here. 

DEF’s CEO Amanda Tuminelli Joins Crypto in America 

On April April 10, 2026, DEF CEO & CLO Amanda Tuminelli joined Crypto in America to discuss the recent Rule 29 hearing in U.S. v. Roman Storm as well as the state of market structure legislation. 

In U.S. v. Storm, Tuminelli noted that Judge Katherine Polk Failla’s questioning was balanced, which makes it difficult to draw conclusions about next steps, though the number of questions around retrial scheduling made her less optimistic about dismissal. On the broader implications of the case for U.S. builders, Amanda stated: 

“It tells developers if you make an immutable tool, or any tool that’s neutral but you don’t have control over it, you can still be held responsible for what other people do with that tool. And that’s a limitless proposition that doesn’t just affect crypto; that’s any software tool that you put into the world and no longer have control over.”

Watch the full Crypto in America episode here. 

Notable and Quotable

“Crypto is forcing the Commission to confront its inner demons that have driven it toward ever more expansive readings of the securities laws. Recent history is littered with a patchwork of no-action letters and enforcement actions that have contorted the term ‘broker’ beyond recognition […] People have shown great ingenuity in developing crypto wallets and front ends that serve users well. It would be a shame if investors in crypto asset securities transactions were unable to use these tools because of an overly broad reading of the term ‘broker.’” 

– SEC Commissioner Hester Pierce’s public response to the Division of Trading and Markets’ Staff Statement on Covered User Interfaces

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